Federal Reserve chairman’s U turn on inflation and taper will only increase volatility. He said that taper will be faster than expected and that inflation is not transitory. Omicron virus and the unknown will still affect price moves in metals and energies. Traders will be sitting on cash after yesterday’s sell off in US stock markets.
US November ADP jobs number is the key. The next four trading sessions is very crucial for gold and silver. They need to trade over $1760 and $22.40 to be in a short term bullish zone.
Yesterday I spoke to my doctor clients and my family doctor on their view of “omicron virus”. The consensus view that is (a) More will be known on “omicron virus” only after middle of December. Till then extreme caution will be needed. (b) In case “omicron virus” becomes deadlier then then world will need a new vaccine and a better vaccine. It will take another three months to six months to make a new vaccine for “omicron virus”. (c) One needs to closely watch the hospitality rate and mortality rate caused due to “omicron virus”. The impact on commodities will be (1) Crude oil will trade with a softer bias and later blast to $90.00 next year. Technically crude oil is bullish as long as it trades over key long term support of $56.00. (2) Gold and silver can fall first and later break past $2000 and $30.00 if there is evidence that “omicron virus” can do severe long term damage to global economy. I using the word “severe” here. (3) Stocks will be a case on sell on rise strategy in the short term. BUT right now everything is dark of “omicron virus”. One needs to trade and invest very carefully.
Trend after Gold London PM fix should continue till tomorrow.
COMEX GOLD FEBRUARY 2022 – current price $1778.80
- Gold has to trade over $1768.20 to rise to $1802.70.
- Gold will crash or sink only if it trades below $1768.20 in USA session.
- A daily close below $1768.20 will be bearish for gold for tomorrow.
COMEX SILVER MARCH 2022 – current price $2284.30
- Silver has to trade over $2236 to be in an intraday bullish zone and rise to $2388.
- Silver will crash if it trades below $2236 till Friday.
NYMEX CRUDE OIL (January 2022) - current price $67.66
- Crude oil has to trade over $65.30 to rise to $70.20 and $74.60.
- Today crude oil will crash if it trades below $65.30 to $62.30 and $60.80.
COPPER MARCH 2022 – current price $433.80
- Copper has to trade over $428.90 to rise to $440.10 and $444.30.
- Copper will crash if it trades below $428.90 after LME opens.